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Pega's AI Control Mitigates Enterprise Risk for GDPR

New control enables enterprises to safely deploy AI to drive better customer experiences while maintaining compliance, especially for the coming GDPR.

Cambridge, Mass.-based Pega on Sept. 29 introduced an industry-first product called T-Switch that gives organizations direct control over the transparency of their artificial intelligence customer engagement models.

Included within the latest release of Pega’s AI-powered Customer Decision Hub, T-Switch enables business users new levels of oversight to safely deploy AI based on their organization’s transparency requirements. This capability is particularly critical for organizations in highly regulated industries to ensure they maintain compliance while also delivering intelligent, personalized customer experiences.

The T-Switch, which will become generally available in late October, is designed to help companies mitigate potential risks and maintain regulatory compliance while providing differentiated experiences to their customers.

Enterprises are increasingly deploying AI to gain better insights into customer needs and provide more personalized service, sales and marketing. But not all AI models are built with the levels of transparency they may need to fully understand how AI makes its decisions–a trait that’s particularly important in highly regulated industries.

Further reading

While some opaque AI algorithms may drive powerful performance, the complex logic behind these ‘black boxes’ can’t be fully explained–a tradeoff that becomes more problematic when the model causes unintended actions. To complicate matters, the European Union’s General Data Protection Regulation (GDPR) mandates that businesses must be able to explain the logic behind AI models using European customer data to make decisions or risk massive fines up to four percent of global revenues for non-compliance.

That regulation will go into force on May 25, 2018. Any enterprise doing business in any or all of the EU’s 28 member countries will need to comply.

As part of the AI-powered Pega Customer Decision Hub, the T-Switch will allow organizations to set the appropriate thresholds for AI transparency or opaqueness. Businesses will be able to predefine these levels for each AI model using a simple sliding scale from one (most opaque) to five (most transparent). The transparency scores will help guide business users to build AI systems using the right models that meet their organization’s transparency requirements while still delivering exceptional customer experiences, the company said.

Business users will be able to control the transparency of their AI based on the models they choose to deploy to drive a desired outcome. For example, it is relatively low risk to use an opaque model for image recognition that helps flag older content assets still using outdated branding.

Conversely, for financial institutions under strict regulations for the kinds of loans they offer customers, marketers may require highly transparent AI models to ensure they can demonstrate the resulting product offers are appropriate for the financial needs for each individual.

Pega Customer Decision Hub users will access the T-Switch and all other Pega AI tools in a newly centralized Business Control Center for AI. This allows users to create, import, adjust, and monitor their AI models to drive better business outcomes in a single dashboard. This includes models built using:

Pega Customer Decision Hub works in tandem with Pega’s suite of CRM applications for marketing, sales, and customer service to anticipate customer needs and provide highly contextual brand experiences for each individual customer.

The T-Swich capabilities will be available by the end of October with the release of the newest version of the Pega Customer Decision Hub. For more information on AI transparency, go here.